Argentina to protect fraud victims

BeInCrypto comprehensive Latin Crypto Roundup brings you the most important news and trends of Latin America. We cover the latest updates and insights from the region's crypto scene with journalists in Brazil, Mexico, Argentina and more.

This week's roundup focuses on Argentina's efforts to protect victims of cryptocurrency scams, the integration of BanColombia's Solana and Arbitrum networks, among other key stories.

Bancolombia Venia will expand through the merger of Solana and Arbitrum.

BanColombia's crypto platform Venia has expanded its offering by merging the Solana and Arbitrum networks, allowing users to transfer Ethereum (ETH) through Arbitrum. This update aims to enhance the user experience with lower transaction fees and faster processing times.

Incorporating the Solana and Arbitrum space has the advantages of expanding Wenyan as a competitive force in the region, especially with Arbitrum more prevalent than Ethereum. Wenya explained that this move aligns the platform with the global trend of supporting more efficient blockchain networks.

“We have a party you'll love! Arbitrum and Solana networks are now available on the Wenia app, and our crypto specialist, Rafael Santamaria, will tell you all about taking control on our Telegram channel this Friday, September 13. Don't miss it!” The platform announced through its X account.

Read more: Crypto vs. Banking: Which is the Smarter Choice?

Since its launch, Venya has offered a variety of digital assets, including Bitcoin, Ethereum, USDC, MATIC and the COPW stablecoin. The platform allows users to view detailed reports on supporting the COPW stablecoin through its backup testing feature.

Earlier this year, Venya introduced Proof of Chain Link (PoR) to increase transparency in its holdings.

“On-chain backup data verification is a critical component of digital asset adoption and serves as a springboard for increasing consumer confidence in the use of stablecoins and other alternative assets. We chose Chainlink as an industry-leading platform,” said Pablo Arboleda, CEO of Wenia.

Inegix Global Taps Natural Gas for New Crypto Mining Data Center in Brazil

Inegix Global has announced plans to use independent natural gas as a power source for its cryptocurrency mining data center in Brazil. It is going to start working in November. The facility will initially have a capacity of 25 megawatts (MW) and plans to expand it to 80 megawatts.

Limited natural gas provides a clean energy option for mining operations in areas with limited infrastructure, particularly in regions rich in gas reserves. This move fits with Brazil's growing reputation for both cryptocurrency adoption and renewable energy innovation.

“Besides being considered one of the largest cryptocurrency markets in the world, Brazil has the right conditions to attract a digital mining industry. With clean energy sources such as independent natural gas and hydroelectric power plants, the country prefers to promote sustainability in the sector and at the same time offer favorable conditions for operating costs and electricity generation, said Yerbolsin Sarsenov, CEO of Enegix.

Read more: Is Crypto Mining Profitable in 2024?

The project aims to support the mining of Bitcoin and altcoins by enhancing Enegix's power management capabilities by more than 30%.

LATAM countries rank among the top 20 for the highest adoption of Crypto.

According to a recent report by blockchain analysis firm Chinalysis, Brazil, Venezuela, Mexico and Argentina are among the top 20 countries with the highest cryptocurrency adoption rates globally. These Latin American countries such as India, Nigeria and the United States are leading the world in crypto usage and transfers.

Chainalysis' Global Adoption Index highlights the role of Bitcoin spot exchange-traded funds (ETFs) in driving BTC movement in North America and Western Europe. In contrast, stablecoins have had a more significant impact in regions such as Africa and Latin America.

“Between Q4 2023 and Q1 2024, the value of overall global crypto activity increased significantly, reaching a higher level than in 2021 during the cryptocurrency bull market. Cryptocurrency activity has increased in countries at all income levels this year, with the report showing that it has lagged behind high-income countries since early 2024.

Read more: Top 9 Crypto Friendly Countries for Digital Asset Investors

In Latin America, Brazil, Venezuela, Mexico and Argentina are leading the way. The report notes that global cryptocurrency activity will increase significantly between Q4 2023 and Q1 2024, surpassing levels seen during the 2021 bull market. While high-income countries will see a slight decline in early 2024, cryptocurrency usage has grown across all income levels.

Fundación Blockchain Argentina to provide legal aid to victims of cryptocurrency fraud.

Fundación Blockchain Argentina has launched a new initiative aimed at protecting scammers by offering them free legal advice. Led by Dr. Sabrina Scavone, the program aims to provide guidance to individuals who are victims of cryptocurrency-related fraud. As investments in digital assets such as Bitcoin continue to grow, fraud is also being encountered, creating concerns within the crypto community.

The service focuses on providing specialized legal advice to those who have suffered financial losses through Ponzi schemes, fraudulent investments or phishing attacks. The foundation's action follows a sharp rise in such crimes, with evidence suggesting that millions of dollars have been lost in hacking and fraud. The service provides victims with an in-depth analysis of their legal options and clear steps to pursue their case.

Guido Zatlucal, president of Fundación Blockchain Argentina, pointed out that this initiative reflects the organization's commitment to the safety and security of the country's crypto community.

Read more: 15 most common crypto scams to look out for

Sabrina Scavone also expressed the need to create a safer and more transparent crypto ecosystem, noting that legal tools can be critical for victims of such crimes. Due to the increase in fraud, Fundación Blockchain Argentina strengthens its role in promoting blockchain education and development, now expanding its efforts to include legal assistance.

Venezuelan authorities seized 35 bitcoin mining machines out of control

On September 6, 2024, Venezuelan authorities, led by the Bolivarian National Armed Forces (FANB) and the Public Prosecutor's Office, seized 35 Bitcoin mining machines in the state of Guarico. The operation, approved by the San Juan de los Moros 3rd Court of Control, confiscated 30 extractors, several industrial fans and two vehicles. The raid was caused by the lack of necessary permits to operate the mine.

In Venezuela, cryptocurrency mining is highly regulated, requiring a license from the National Supervisory Authority of Cryptoassets (Sunacrip). However, since Sunacrip was banned in 2023 due to a corruption scandal involving state oil company PDVSA, the crypto industry has lacked a clear regulatory framework.

This regulatory gap has created challenges for miners. Many argue that they lack the guidance to act legally, thus interventions like Guarico's. High energy consumption from Bitcoin mining, particularly from ACC machines, is a key issue that has exacerbated Venezuela's ongoing energy crisis. Frequent blackouts have prompted the government to disconnect mining farms from the National Electricity System (SNN) in a bid to stabilize power for citizens.

Read more: Crypto Regulation: What are the Pros and Cons?

President Nicolás Maduro recently said cryptocurrencies would be a priority on his political agenda, but details about reinstating Sunacrip or clarifying regulations are unclear. In the meantime, the uncertainty in Bitcoin mining in Venezuela will continue, with miners exposed to legal action and sanctions. Similar attacks have also been reported in Paraguay.

As Latham's crypto scene continues to grow, these stories highlight the region's growing influence on the global market. Stay tuned for more updates and insights on next week's roundup.